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MMH announces layoffs
Marengo Memorial Hospital announced Wednesday, March 31, six positions will be eliminated as part of an effort to reduce expenses by over $400,000.
Marengo Memorial Hospital, like many healthcare organizations, has had to face the difficulties of declining revenues, said Chief Executive Officer Genny Maroc, FACHE.
Many cost reduction measures have been identified and implemented in response to revenue levels. Despite an overall 6.3 percent reduction in expenses over last year’s expenses, at this time a reduction in force (RIF) is deemed the only course of action capable of meeting the organization’s objectives, she said. Leaders recently received a board mandate to further reduce expenses by at least $400,000 annually.
“We’ve seen a decline in our revenues and each day we are challenged to do more with less, all the while ensuring we provide safe and compassionate patient care,” said Maroc.
Staffing levels in the entire hospital were evaluated. Then, department-by-department staffing needs were evaluated. Certain unique positions were identified for complete elimination. In all, six positions were cut. Marengo Memorial will accomplish the goal by reducing expenses by $425,403 annually through an involuntary employment termination program.
“The decision to undertake a workforce reduction is not made lightly. This is a sad day,” Maroc said.
In addition, the hospital will also reduce expenses through establishing a flexible staffing model and through consolidating several departments in order to increase productivity and efficiency. The hospital is currently under a hiring freeze.
“We do not anticipate any further cuts. It is not anticipated that we will be in a position to hire employees for at least the time frame of six months to one year,” said Lesa Waddell, MMH director of human resources.
Marengo Memorial Hospital is a 25-bed critical access hospital offering acute care, observation, skilled nursing, extended care and an array of outpatient services. A not-for-profit organization governed by a community board of trustees, Marengo Memorial Hospital is committed to providing quality healthcare services to Marengo and surrounding communities.

 

 

 

 

UPDATED March 31, 2010 1:57 PM

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